The year 2020 was an outstanding year for Special Purpose Acquisition Companies (SPACs) in the US. According to the research data analyzed and published by Sijoitusrahastot, 248 US SPACS raised $83.04 billion in 2020. That was almost double the $47.11 billion raised in the previous 10 years combined. Compared to the 59 deals made in 2019, there was a 300% increase in deal volume.
Based on SPAC Alpha data, the market share of US-listed SPACS rose from 23% in 2019 to 53% in 2020.
Average SPAC Trust Size Rises Fivefold from $72 Million in 2010 to $345 Million in 2020
Activity in the SPAC space was particularly noteworthy in the second half of 2020, when over 200 SPAC deals closed, compared to only 34 in H1 2020.
According to McKinsey, as of August 2020, 90% of all SPAC deals made in 2020 closed successfully. Prior to 2015, the success rate was much lower as 20% had to liquidate and return investor money.
Moreover, over the past decade, the average SPAC trust size has shot up fivefold. From $71.8 million in 2010, the figure rose to an average of $344.8 million in 2020.
Live Oak Acquisition Corp had one of the most successful SPACs in 2020. After its May 2020 IPO, the company merged with Danimer Scientific. By December 30, 2020, it had gained a 171% return from the offer value. Additionally, Kensington Capital Acquisition had a 162% gain while TPG Pace Beneficial Finance posted a 154% increase in value.
Goldman Sachs was among the top beneficiaries of the SPAC boom on Wall Street. During the year, the bank made $3.41 billion in underwriting fees. Morgan Stanley was second with $3.09 billion, marking an 81% year-over-year (YoY) uptick. JP Morgan Chase took third place with a 66% YoY increase in fees to $2.76 billion.
2021 is set to be another landmark year as in its first three weeks, the total number of SPACs had already surpassed the 2019 annual total.
Equities Market Closes in Red on Monday
The Nigerian Exchange Limited extended its bearish trend on Monday as several unclear economic policies continue to dictate market sentiment.
Investors traded 209,212,596 shares estimated at N1.763 billion during the trading hours of Monday.
Market value of listed equities dipped to N20.089 trillion on Monday, while the Nigerian Exchange Limited All-Share Index lost 0.27 percent 38545.30 index points.
Meyer Plc led gainers with 8.77 percent to close at N0.57 a share. This was followed by Champion Brew. Plc with 6.06 percent. See the details below.
|MEYER||N 0.57||N 0.62||0.05||8.77 %|
|CHAMPION||N 1.98||N 2.10||0.12||6.06 %|
|JBERGER||N 19.10||N 20.00||0.90||4.71 %|
|REGALINS||N 0.50||N 0.52||0.02||4.00 %|
|IKEJAHOTEL||N 0.94||N 0.97||0.03||3.19 %|
|FIDSON||N 5.10||N 4.60||-0.50||-9.80 %|
|LASACO||N 1.50||N 1.36||-0.14||-9.33 %|
|FTNCOCOA||N 0.33||N 0.30||-0.03||-9.09 %|
|MBENEFIT||N 0.45||N 0.41||-0.04||-8.89 %|
|CORNERST||N 0.58||N 0.55||-0.03||-5.17 %|
FG To Auction Three Bonds Worth 50B Each This Week
The Debt Management Office has said that the Nigerian government will offer N150 billion bonds for subscription in June.
The bonds comprised three bonds worth N50bn each, a circular said Friday.
The DMO said the bonds will be auctioned on June 23 and all three have the same date for settlement.
The bonds are a 10-year re-opening bond to be offered at the rate of 16.2884 percent and to mature in March 2027; a 15- year re-opening bond to be offered at 12.5 percent with the maturity date of March 2035; and a 30-year re-opening bond to be offered at 12.98 percent and mature in March 2050.
FGN Bonds are “backed by the full faith and credit of the Federal Government of Nigeria”, the DMO said, adding that they are equally charged upon the general assets of Nigeria.
The debt office explained further that FGN bonds qualified as liquid assets for liquidity ratio calculation for banks.
For re-openings of previously issued bonds where the coupon is already set, the circular said successful bidders would pay a price corresponding to the yield to maturity bid that cleared the volume being auctioned, plus any accrued interests on the instrument.
Last month, the DMO offered similar bonds of N150bn bonds for a subscription which comprised three bonds worth N50bn each.
NGX Suspends Trading in GTBank’s Shares Ahead of Guaranty Trust Holding Listing
The Nigerian Exchange (NGX) Limited last Friday placed a full trading suspension on the shares of Guaranty Trust Bank(GTBank) Plc.
According to the NGX, the suspension was necessary to prevent trading in the shares of the bank in preparation for the eventual delisting of GTBank to pave way for the listing of the holding company(Holdco), Guaranty Trust Holding Company Plc on NGX.
Shareholders of the GTBank had ratified the plan to adopt a Holdco structure and the Group Managing Director of the bank, Mr. Segun Agbaje, had told them the development would see a new corporate entity, Guaranty Trust Holding Plc, take the place of GTBank on the London and Nigerian Stock Exchanges.
He explained that change would entail a 1:1 share transfer while the Holdco would serve as the parent company and corporate center for GTBank Nigeria, all GTBank African subsidiaries and all other new businesses that will be created following the transition.
“Our transition into a Holdco is a necessary step to future-proofing our leadership position, sustainably growing our earnings and achieving our long-term goal of becoming one of the top five financial institutions in Africa. It is also a critical part of our response to the seismic shifts in customer expectations and changes in business models,” Agbaje had said.
He noted that as a Holdco, they will compete more effectively with non-banks in the new competitive landscape; pairing their strength in financial services with an aggressive focus on creating value in every aspect of their customers’ lives.
“We will create a new payments business to deliver the innovative solutions that will deepen and extend digital financial services across Africa. We also believe that we are in a better position to drive an asset management business and a pension fund business, given our strong retail base and digital-first approach to financial services, which we have honed over the past decade. Taken together, our entry into these new growth areas will allow us to maximize our potential in a way that banks were restricted from and enhance the value we create as a platform for enriching lives,” he said.
According to him, following a decade of birthing innovative ideas and nurturing them into businesses, the Holdco structure would he bank to unleash the power within, in ways that allow us to thrive in spaces banks were excluded, build out the full value of the innovations they have nurtured over the years and deepen the value we can create stakeholders.
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